The governments of UK and Isle of Man signed a new tax treaty on July 2.
The tax treaty is based on the latest OECD Model Tax Convention and includes provisions to reflect the OECD’s base erosion and profit shifting (BEPS) measures.
The Isle of Man’s Chief Minister, Howard Quayle, said: “In signing this Agreement, we are delivering on a commitment made in March 2016 to renegotiate our old agreement with the UK. This new Agreement will provide clarity to Isle of Man residents with UK income. It is a modern Agreement based on the OECD standard, which fulfils our commitment to the BEPS minimum standard in respect of our most significant partner jurisdiction and continues our longstanding policy of cooperating with the UK to eliminate double taxation and to counter tax avoidance.”
The tax treaty replaces the one that was signed in 1955. It is expected that the new tax treaty will be effective in the coming year.